Question 1

In relation to price fixing, what is meant by conscious parallelism?

Accepted Answer

Within some industries prices between competitors will tend to remain similar even without an agreement between those in the industry. Most likely their products are so similar that if one firm had higher prices, it would lose substantial business. Many times in an industry of this nature, there is one firm that tends to be the "price leader", so that if it raises or reduces its prices, the others must quickly follow in order to maintain market position. Thus parallel pricing by itself is not evidence of a conspiracy, since it can be explained in the above fashion.

Question 2

An administrative act or decision may be challenged on a number of grounds. Which of the following is NOT grounds for a challenge?

Accepted Answer

A)  procedural unfairness 
B)  constitutionality 
C)  the decision or act was done arbitrarily 
D)  procedural irregularity 
E)  lack of authority 
A)  procedural unfairness 
B)  constitutionality 
C)  the decision or act was done arbitrarily 
D)  procedural irregularity 
E)  lack of authority C

Question 3

Why is it important that a consumer, who has financed a purchase, have the same rights against the finance company as against the merchant who sold the goods? What law gives the consumer this assurance?

Accepted Answer

Without these rights, the consumer would be liable on the financing contract and there would be no opportunity to refuse to pay for the goods if they proved defective or if the dealer refused to perform his warranties. An amendment to the Bills of Exchange Act makes finance companies subject to consumers' defences against sellers.

Question 4

Jack owns a shoe store in a mall. A few months later, another shoe store opens in the mall. A month later, Jack notices that his sales figures have dropped considerably. He conducts an investigation and determines that the other store has been selling his shoes at unreasonably low prices. This conduct is called bid- rigging.

Accepted Answer

A) True 
 B)False

Question 5

Resale price maintenance is

Accepted Answer

A)  where loss leaders and bait- and- switch tactics are permitted. 
B)  only defended with the argument that adequate service needs to be provided. 
C)  an offence where the supplier has no defences. 
D)  sanctioned by the Competition Act. 
E)  where the supplier tries to force the retailer to sell at a higher price. 
A)  where loss leaders and bait- and- switch tactics are permitted. 
B)  only defended with the argument that adequate service needs to be provided. 
C)  an offence where the supplier has no defences. 
D)  sanctioned by the Competition Act. 
E)  where the supplier tries to force the retailer to sell at a higher price.

Question 6

Tied- selling is an example of monopolizing.

Accepted Answer

A) True 
 B)False

Question 7

The Constitution has given Parliament the jurisdiction over

Accepted Answer

A)  those matters strictly within the province. 
B)  trade and commerce. 
C)  property and civil rights. 
D)  trucking and road transportation. 
E)  stock exchanges and securities transactions. 
A)  those matters strictly within the province. 
B)  trade and commerce. 
C)  property and civil rights. 
D)  trucking and road transportation. 
E)  stock exchanges and securities transactions.

Question 8

One way to protect consumers is through the licensing, for control purposes, of certain types of businesses. Which of the following require licensing for the protection of consumers?

Accepted Answer

A)  restaurants 
B)  collection agencies 
C)  door- to- door sellers 
D)  travel agencies 
E)  all of the above 
A)  restaurants 
B)  collection agencies 
C)  door- to- door sellers 
D)  travel agencies 
E)  all of the above

Question 9

What are some of the modern developments that have made it necessary for the government to protect consumers?

Accepted Answer

Your authors point out the following dev

Question 10

Why would certain groups of professionals be exempt from the anti- competitive sections of the Competition Act?

Accepted Answer

Their professional restrictions may be v

Question 11

Regarding government regulations, a distinction is sometimes made between direct regulation and social regulation. Which of the following would be a social regulation?

Accepted Answer

A)  standards of safety at amusement parks 
B)  production levels of utilities 
C)  pricing of brokerage services 
D)  import quotas on textiles 
E)  rate of return on deposits 
A)  standards of safety at amusement parks 
B)  production levels of utilities 
C)  pricing of brokerage services 
D)  import quotas on textiles 
E)  rate of return on deposits

Question 12

For the merger of two large competing companies to be approved, there must

Accepted Answer

A)  be no evidence of foreign competition in the market. 
B)  be good economic health in the target firm. 
C)  be barriers to prevent new competitors from entering the market. 
D)  still be effective competition after the merger. 
E)  have been a pre- notification to Parliament. 
A)  be no evidence of foreign competition in the market. 
B)  be good economic health in the target firm. 
C)  be barriers to prevent new competitors from entering the market. 
D)  still be effective competition after the merger. 
E)  have been a pre- notification to Parliament.

Question 13

With reference to the Competition Act, which of the following is most likely to lessen market competition "unduly"?

Accepted Answer

A)  imposing limits or quotas on production 
B)  agreeing that each firm produce a different type of product 
C)  sharing markets on a territorial bases 
D)  practicing conscious parallelism 
E)  conspiring to set prices 
A)  imposing limits or quotas on production 
B)  agreeing that each firm produce a different type of product 
C)  sharing markets on a territorial bases 
D)  practicing conscious parallelism 
E)  conspiring to set prices

Question 14

A year ago, Lawrence purchased $6500 worth of furniture on time. In April he failed to make his payment and suddenly discovered that the entire balance of the loan was due. Unless there is a provincial stature to limit the use of this kind of term, Lawrence is caught by

Accepted Answer

A)  a self- help repossession remedy. 
B)  a negotiable instrument. 
C)  a standard form exemption clause. 
D)  a conditional sales contract. 
E)  an acceleration clause. 
A)  a self- help repossession remedy. 
B)  a negotiable instrument. 
C)  a standard form exemption clause. 
D)  a conditional sales contract. 
E)  an acceleration clause.

Question 15

The Canadian Constitution provides for a division of powers between federal and municipal governments.

Accepted Answer

A) True 
 B)False

Question 16

Regarding quality and suitability, what protection do consumers have under the Sale of Goods Act?

Accepted Answer

The Act inserts implied terms with respe

Question 17

The municipality put up under separate bids the construction of five rural bridges. In advance, three dominant bridge contractors met and decided on how they would each bid on the contracts. Are they in violation of the federal Competitions Act?

Accepted Answer

A)  Yes, since jurisdiction on local bidding is left to the municipality. 
B)  Yes, since bid- rigging is specifically mentioned in the Act. 
C)  No, because a damaged third party would need to bring the action. 
D)  No, since this does not constitute the lessening of competition. 
E)  No, since bidding is not mentioned in the Act. 
A)  Yes, since jurisdiction on local bidding is left to the municipality. 
B)  Yes, since bid- rigging is specifically mentioned in the Act. 
C)  No, because a damaged third party would need to bring the action. 
D)  No, since this does not constitute the lessening of competition. 
E)  No, since bidding is not mentioned in the Act.

Question 18

How does the Food and Drug Act protect consumers?

Accepted Answer

The Act prescribes penalties for the sal

Question 19

In door- to- door selling, most provinces have imposed a cooling- off period. Define what is meant and explain why these laws are needed. Also, explain why these laws are anti- contract and how they might be looked at as "big brother watching over us"?

Accepted Answer

These laws allow the consumer to back ou

Question 20

Bid rigging is an example of a conspiracy.

Accepted Answer

A) True 
 B)False

Exam 32: Government Regulation of Business

In relation to price fixing, what is meant by conscious parallelism?

An administrative act or decision may be challenged on a number of grounds. Which of the following is NOT grounds for a challenge?

Why is it important that a consumer, who has financed a purchase, have the same rights against the finance company as against the merchant who sold the goods? What law gives the consumer this assurance?

Resale price maintenance is

Tied- selling is an example of monopolizing.

The Constitution has given Parliament the jurisdiction over

One way to protect consumers is through the licensing, for control purposes, of certain types of businesses. Which of the following require licensing for the protection of consumers?

What are some of the modern developments that have made it necessary for the government to protect consumers?

Why would certain groups of professionals be exempt from the anti- competitive sections of the Competition Act?

Regarding government regulations, a distinction is sometimes made between direct regulation and social regulation. Which of the following would be a social regulation?

For the merger of two large competing companies to be approved, there must

With reference to the Competition Act, which of the following is most likely to lessen market competition "unduly"?

A year ago, Lawrence purchased $6500 worth of furniture on time. In April he failed to make his payment and suddenly discovered that the entire balance of the loan was due. Unless there is a provincial stature to limit the use of this kind of term, Lawrence is caught by

The Canadian Constitution provides for a division of powers between federal and municipal governments.

Regarding quality and suitability, what protection do consumers have under the Sale of Goods Act?

The municipality put up under separate bids the construction of five rural bridges. In advance, three dominant bridge contractors met and decided on how they would each bid on the contracts. Are they in violation of the federal Competitions Act?

How does the Food and Drug Act protect consumers?

In door- to- door selling, most provinces have imposed a cooling- off period. Define what is meant and explain why these laws are needed. Also, explain why these laws are anti- contract and how they might be looked at as "big brother watching over us"?

Bid rigging is an example of a conspiracy.

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Filters